Fast Money Recap - A Housing Shortage? (4/1/09)

|
Includes: AA, CELG, CREE, FCX, GS, JPM, MSFT, ORCL, SCCO, VLY, VZ
by: Miriam Metzinger

Recap of CNBC's Fast Money, Wednesday April 1.

Dow Rises 2%: Macy's (NYSE:M), JCPenney (NYSE:JCP)

The Dow was up slightly on Wednesday on positive home sales and good news about production. Guy Adami says he sees the S&P 500 going to 900. Jeff Macke notes the fact Macy's and JC Penney survived downgrades is a tell. Pete Najarian observed financials were strong all day.

JP Morgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Valley National (NYSE:VLY)

Goldman Sachs and JP Morgan were up on optimism concerning the mark-to-market decision on Thursday. Karen Finerman thinks the issue is important and said the legislation will have an effect on banks like Valley National, which never were involved in the subprime debacle, but were taken down.

Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT), Cree (NASDAQ:CREE)

Tech was the only sector that ended down after a quarter that was generally strong for the rest of the market. Guy Adami thinks Oracle still wants to move higher in spite of having gained already. Jeff Macke says the fact Microsoft is going up is a good sign to be long stocks. Pete Najarian says options action is predicting an upside for Cree. Adami doesn't consider Cree a value trade, but thinks it might be an attractive takeover target.

Celgene (NASDAQ:CELG) Slumps

Celgene fell on news that its performance would be lower than expected because of economic factors. Guy Adami thinks the stock was unfairly hammered in spite of some decent news about drugs in its pipeline. Macke would leave the stock alone. Najarian likes Celgene and Karen Finerman thinks there might be a lot of M&A activity in the biotech sector.

Interview with Verizon's (NYSE:VZ) CEO Ivan Seidenberg

In spite of the downturn, Verizon says its wireless business has grown in the last quarter. Seidenberg says he plans to increase capital spending. With FiOs and high speed internet performing well, Seidenberg doesn't foresee any need for price cuts to compete. He called Skype a "one-trick pony," and added; 'We offer everything that Skype can offer but we do it with a bigger bundle'. He concluded, "In an economy that seems to have forgotten how to grow, the mobile industry keeps reminding us."

A Housing Shortage? Freeport McMoRan (NYSE:FCX), Southern Copper (PCU), Alcoa (NYSE:AA)

With the worst quarter for the Dow since 1939, Dennis Gartman is prepared to look forward and thinks the answer is in building. He thinks that the number of houses has been reduced so dramatically that there will be a housing shortage. He is long copper for fundamental and technical reasons; "It doesn’t make new lows even when the news is bad.” He would buy Freeport, Southern Copper and Alcoa. Gartman also recommends being short the yen against the dollar.

Seeking Alpha is not affiliated with CNBC or Fast Money.

About this article:

Expand
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here